Could saving for retirement impact my disability benefits?

The short answer is, yes. Minnesota workers may choose to invest in both an ABLE savings account, a tax-advantaged savings and investment account for eligible individuals with disabilities, and a separate retirement savings account, but ABLE accounts were designed to have unique protections not found with other types of savings and investment accounts. The money saved in an ABLE account is not considered an asset and does not count against asset limits that could impact your eligibility for state or federal benefits. This is not the case for retirement savings accounts.

Participating in a workplace retirement plan such as Minnesota Secure Choice may impact access to services and benefits for ABLE savers. As with other retirement accounts, money saved in a Minnesota Secure Choice account does not count against asset limits. If you are concerned about asset limits, you have the option to move the money invested in your Minnesota Secure Choice account to an ABLE account. An individual experiencing a disability is considered exempt and would not be liable to pay a 10% penalty tax on early distributions for any earnings that have accrued, however, we advise you to speak with a financial advisor to understand any potential tax consequences.